Are your property taxes too much to bear?
Do you know how much it costs to own a house in the U.S. these days? You are not just paying for your house anymore; you are also paying your daily expenses, your personal taxes, and more importantly, your property taxes.
Add all of that together and you end up with a ridiculous amount of debt and a likely possibility of losing your home. If you have a good job and a mid-sized family to support, you may survive the excruciating rise in real estate costs. If, however, you are in a bind and cannot keep up with the increasing rates of your community expenses, you may want to consider your options. But before anything else, let us take a look at what you are really paying for.
Why are you paying so much for your house?
The first major hurdle to your finances is the house that you bought. You essentially paid, not just for the house itself, but its location, the type of neighbors you have, the quality of security in the community, and your accessibility to better salaries within the commercial industry. The better your living conditions are, the higher your house’s value.
Aside from that you are also paying for your housing and property tax. Your property tax is based on the value of your home and the land that it stands on. If you’re in a very good location that is also a good business hub, your property taxes will skyrocket within a decade.
Why are the property taxes so high in some areas?
Take a look at New Jersey, for example. According to a survey done by Monmouth University, more than half of New Jersey residents are planning to move out of the state. Why? Because most of them can’t keep up with the continued rising of housing and property taxes.
The reason for this is because of a few key elements in the state that your house is located in:
1. The community has quality, well-funded schools.
Taxes are higher in districts with good schools because good education contributes a lot to the community.
2. State workers are paid well.
This means that the government is well-compensated. It’s a good thing because employees who are paid better usually work better; however, the money used is paid by the taxpayers in the form of property taxes.
3. Your state relies on your taxes.
This means that the growth of the state is reliant on the stability or continued rise of its taxes.
4. There is not much tourism.
For places that rely solely on personal taxes, the government needs to get their funds from other forms of taxes – namely your property tax.
5. Not enough industrial or commercial businesses.
If a state has a booming business industry, it is less likely to turn to individual taxpayers for compensation. If there is little to no income in the business and industrial sector, the people in the community will have to cover the expenses of the state with their own taxes.
6. Your house’s cost.
Whether it’s really expensive or really cheap, you still end up paying a high property tax rate. People who own large properties get billed for more taxes, while people in the lower spectrum are billed for a higher percentage of taxes.
(Note: Want to be done with selling an inherited property? Get a fair cash offer now! SELL YOUR HOUSE!)
What’s the solution?
Take a cue from the New Jersey residents, who are considering their options. Rather than take the rising property taxes as they are, they are opting to move to states with lower taxes. Moving to states with lower taxes can be the best option, but first you have to consider your other options.
You can always stay in the state, but move to a less expensive home. Just because a certain district or town feels like home, there are always other locations that have not been hit by the property tax hikes. These locations are not necessarily bad either. They could be developing into better communities, which gives you more time to save up for the looming tax hike in the future.
With that being said, your next step is to SAY GOODBYE TO YOUR CURRENT HOUSE. It is not easy to sell a home in the blink of an eye, but there are businesses that can help you move a little bit faster. If you want to sell your house fast, Kahuna Buys Houses can do it for you.
The company buys HOUSES FOR CASH, with NO OTHER OBLIGATIONS in their offer. WE PAY ALL CASH, which means that you can buy a new home in a better location in no time at all.
Latest posts by Corey Peterson (see all)
- The True Cost Of Home Ownership - November 7, 2017
- An Investor Offered To Buy My House. Is This Legit? - September 30, 2017
- HOME MAINTENANCE: Neglect and Regret! - August 14, 2017
- Benefits Of Living In The Urban Life! - July 24, 2017
- Downsizing Your Home Can Save You Money - July 13, 2017